Can a HOA restrict subletting to roommates?

from Arvada, Colorado

posted over 4 years ago

Hey!

Hopefully a quick question - I know some HOAs limit how many units in the association are rented vs. owner occupied. I'm looking into purchasing a large condo or townhome (3+ bedrooms) on the cheap, investing some sweat equity and renting the extra spaces out to roommates to pack away equity and produce extra cash flow that can be invested in future properties.

I was talking with my mom, who suggested that a picky HOA could restrict who else lives in the townhome besides the owner occupant. For example, ok to have family living with you for free or helping out with mortgage payments, but not ok to charge rent to roommates. Is this actually possible? Could an HOA cause problems with someone renting extra rooms?

Real Estate Professional from West Palm Beach, Florida

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